Computing Average Unit Costs (LO2)

The total monthly operating costs of Chili To Go are:

$10,000 + $0.40X where X = servings of chili Required

a. Determine the average cost per serving at each of the following monthly volumes: 100; 1,000;

b.

5,000; and 10,000 Determine the monthly volume at which the average cost per serving is $0.60. (p. 63)

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